Security Deposit Refund Method - Money Order or Bank Check?

Question

Hello BP!  I'm a new landlord here, and I just had my first tenant move out (it was a VERY short lease).  I've gone through all of the steps for moving out, and now I only have to return the security deposit.  What method do y'all use for the refund, when you send the Disposition of Deposit?

A Personal check?  I don't really like this option because it would have my personal info and account number there.

A Money Order/Cashier's Check?  This would be vulnerable to theft, right?

Online Options?  I use TurboTenant for rent payments, but I don't know if there's an option there for refunds.

Anything else?  Let me know what y'all prefer to do.

Thanks!

Nathan Gesner · Answer

Just because someone has your account number doesn't mean they can steal your money. People have given out personal checks for decades and they are completely safe.

You should give the money out in the same manner you received it. If they paid by personal check, refund by personal check. If they required them to pay with money order or online, use that method.

David M. · Answer

@Samuel Harvey

Why a business account?  Could still do a personal account.  Or, get checks without your home address written on the top.

Are you handing over the check or mailing it?  If latter, might as well do an online bill pay from your bank account.  Then, a bank check is mailed out..

David M. · Answer

@Samuel Harvey

Try it yourself....  Online bill pay to some major company is some sort of electronic, free transfer to my knowledge.  However, to some person or small company which wouldn't have the banking relationship setup, its a paper cheque that is snail mailed.  Bill pay yourself $1 and see for yourself...

Nathan Gesner · Answer

I would just order new checks without your address on them, specifically for refunding to tenants.

David M. · Answer

@Nathan G.

I have no idea why people nowadays have an aversion to using a personal check...  It probably linked to desire to latch on to the latest, greatest fandangled technology that came out.  investing and monetary transactions have been going on just fine for centuries without it all...  Not say some of it doesn't help --- i still prefer Excel to an old fashioned ledger, for example.

Samuel H. · Answer

It's just what we've decided, so far.

I'll be mailing the check.  An online bill pay sends a bank check out?  I didn't realize that!  I'll check into that option, thanks.

Samuel H. · Answer

Yes, I'm not paranoid about the account, per se.  I'm more worried about revealing my personal home address.  I'm in the process of setting up a business checking account, but it's not ready yet.

Thanks!

Samuel H. · Answer

Yes, I'm in the process of opening another account, but there are several hurdles that I haven't been able to jump, yet.

As for my State (TX), no, there are no specific requirements about how to hold the deposit.  Just the timing of when it must be refunded.

Yeah, I'm fine with paper payments and personal checks, etc.  I was just curious about how others do it here, and what your opinions are.

Thanks for answering!

David M. · Answer

@Samuel Harvey

I just write  personal check....  If you really didn't want your tenants to know your personal info, you should have opened another checking account ahead of time.

Out of curiosity, I suppose then your State doesn't have another requirements on how to hold a security deposit?

You could send a Zelle payment from your bank.  paypal or Venmo?

There really isn't anything wrong with "paper" payments.  Its still legal tender.  For that matter you could hand over cash and have them sign a receipt.  It doesn't need to be that complicated.

Security Deposit Refund Method - Money Order or Bank Check?

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